How to make a product fit the market with the new outline of a value proposition

I really like the lean startup movement and its underlying principle that a market-appropriate product is searched for by testing, researching and experimenting with the simplest product prototypes you can imagine (the so-called minimum viable products - MVP ). This helps companies avoid creating products that consumers don’t need. However, until recently, a fundamental conceptual tool to accompany this process was absent. There was no practical tool that would help businessmen to schematically depict, think through, discuss, test and change the value offered by the company in accordance with the needs of their customers. Therefore, together with Yves Pigne andAlan Smith, we came up with the Canvas of the proposed value.

Canvas of the proposed value is a kind of addition to the Canvas business model . It helps to design, test and shape the value offered to consumers in a more structured and thoughtful way, just as Canva business models help in the process of developing a business model (I wrote in detail how we came up with this new tool).

The canvas of a business model with its 9 building blocks concentrates on the big picture. The canvas of the proposed value examines in detail two of these blocks - the proposed value and the customer segment, allowing you to describe and analyze in more detail the “correspondence” between them. Companies need to achieve both the right “fit” and the right business model if they do not want to burn out, as I wrote earlier in the post about failures . These tools work best in combination. One does not replace the other.



In this post I will talk about this conceptual tool. In my next post I will explain how it can be used in testing in combination with the development methods of the client Steve Blanc and the lean startup Eric Ries. The outline of the proposed value will help to better describe the hypotheses on the proposed values ​​and consumers, prepare for an interview with consumers, and also become a guide to testing and changes.

Canvas of proposed value

As noted earlier, the Canvas of Offered Value consists of two Canvas blocks of the business model: the Offered Value and the corresponding consumer segment that you are accessing. The purpose of the tool is to help you more specifically outline each of them with a simple but effective structure. Such visualization helps to improve strategic communication and prepares to test both blocks.

Reaching Compliance

Canva's Offered Value goal is to help you develop great value propositions that fit the needs and goals of your customers and enable them to solve their problems. This is what, in the context of startups, is called matching a product to a market or matching a solution to a problem. The outline of the proposed value helps to take a more systematic approach to achieving this fit.

Consumer Tasks

First, let's take a closer look at the consumer and sketch his portrait. I want you to pay attention to three things. Start by describing what your target consumers are trying to do. These may be tasks that they are trying to accomplish, problems that they are trying to solve, or needs that they are trying to satisfy.



Ask yourself:

• What functions does your consumer try to perform? (e.g. perform a specific task, solve a specific problem, ...)
• What social tasks is your consumer trying to accomplish? (for example, trying to look good, trying to gain credibility or status, ...)
• What emotional tasks is your consumer trying to accomplish? (e.g. aesthetics, well-being, safety, ...)
• What basic needs is your consumer trying to satisfy? (e.g. chat, sex, ...)

"Pain" of the consumer

Now describe the negative emotions, unwanted expenses, situations and risks that arise or could arise earlier in the consumer before, during or after the task.



Ask yourself:
• What does your customer find too costly? (for example, something that takes a lot of time, costs too much money, requires significant effort ...)
• What makes your consumer feel bad? (for example, grief, annoyance, things that cause a headache, ...)
• What current solutions do not suit your consumers? (for example, lack of functionality, performance, poor performance, ...)
• What are the main challenges and problems your customer faces? (for example, a lack of understanding of how everything works, difficulties with implementation, opposition, ...)
• What negative social consequences does your consumer face or are afraid to face? (for example, loss of reputation, credibility, trust, status, ...)
• What risks does your consumer fear? (for example, financial, social, technical, that something might go completely wrong, ...)
• Why does your consumer not sleep at night? (for example, big problems, worries, worries, ...)
• What common mistakes does your consumer make? (for example, usage errors ...)
• What barriers keep your consumer from implementing solutions? (e.g. initial investment cost, learning curve, failure to accept change, ...)

Rank each “pain” according to its intensity from the point of view of the consumer. Is she very strong or very weak? For each “pain”, note how often it occurs.

Consumer Benefits

Now be taken aback by the benefits that your consumer expects, wants or would be surprised to receive. This includes functional application, social benefits, positive emotions and savings.



Ask yourself:

• Saving what will make your consumer happy? (e.g. time, money, effort, ...)
• What results does your consumer expect and what can exceed his expectations? (e.g. quality level, more of something, less of something, ...)
• What does your consumer like about current solutions? (e.g. specific functions, performance, quality, ...)
• What would simplify the work or life of your consumer? (e.g. smoother learning curve, more services, lower cost of ownership, ...)
• What are the positive social impacts your consumer wants? (for example, to look good, increase credibility, increase status, ...)
• What are consumers looking for? (for example, good design, guarantees, specific functions or expansion of functionality, ...)
• What do consumers dream about? (e.g. great achievements, great relief, ...)
• How does your consumer measure success and failure? (e.g. performance, cost, ...)
• To increase the likelihood of implementing a solution? (for example, cost reduction, investment, risk; improving quality, productivity, design, ...)

Rank each advantage in terms of importance to the consumer. Is it necessary or insignificant? Indicate how often each advantage takes place.

Products & Services

Now that you have sketched a portrait of your consumer, let's move on to the value offered. Again, I want you to pay attention to three things. First, list all the products and services around which your proposed value is built.



Ask yourself which of the products and services you offer helps your consumers achieve functional, social, or emotional goals or basic needs.

Products and services can be tangible (for example, manufactured goods, personal customer service), digital / virtual (for example, downloads, online recommendations), intangible (for example, copyrights, quality assurance) or financial (for example, investment funds, financial services )

Rank all products and services by their importance to your consumer. Are they vital or insignificant for your consumer?

"Painkillers"

Now let's describe how your products and services create value. First describe how your products and services “ease the pain” of the consumer. How they eliminate or reduce negative emotions, unwanted expenses or situations, as well as the risks that your consumer bears or may bear before, during and after completion of tasks.



Ask yourself about products and services ...

• Do they provide savings? (for example, in the form of time, money, effort, ...)
• do they improve the emotional state of your consumers? (for example, remove grief, irritation, things that bring a headache, ...)
• Do they correct deficiencies in existing solutions? (e.g. new features, improved performance, improved quality, ...)
• Do they remove the difficulties or problems your customer is facing? (for example, they simplify something, help to do it, reduce opposition, ...)
• Do they exclude the negative social consequences that your consumers are facing or are afraid of? (e.g. loss of reputation, authority, trust, status, ...)
• Do they reduce the risks your consumers fear? (for example, financial, social, technical, that something may go completely wrong ...)
• Do they help your consumers sleep better at night? (for example, help solve big problems, reduce fears, relieve worries, ...)
• Do they limit or eradicate common mistakes consumers make? (e.g. usage errors, ...)
• Do they remove the barriers that keep your customers from implementing solutions? (e.g. reduction or exclusion of initial investment, smoother learning curve, less resistance to change, ...)

Rank each “pain” your products and services are relieving of in intensity from your consumer’s point of view. Is she very strong or very small? For each “pain”, note how often it occurs.

Sources of Benefits

Finally, describe how your products and services create customer benefits. How they create the additional benefits that your consumer expects, wants or would be surprised to receive, including functional use, social benefits, positive emotions and savings.



Ask yourself about products and services ...

• Do they provide savings that make your consumer happy? (for example, in the form of time, money, effort, ...)
• Do they provide the results that the consumer expects, or that exceed his expectations? (e.g. improving quality, more than something, less than something ...)
• do they copy or exceed current solutions that satisfy your customer? (e.g. regarding specific functions, performance, quality, ...)
• Do they simplify the work or life of the consumer? (e.g. smoother learning curve, convenience, affordability, more services, lower cost of ownership, ...)
• Do they provide the positive social impact that the consumer wants? (for example, they allow him to look better, provide increased authority, status, ...)
• Do they give something that your consumer wants? (for example, good design, guarantees, specific functions or expansion of functionality, ...)
• Do they fulfill any consumer dreams? (for example, contribute to great achievements, provide great relief, ...)
• Do they give positive results that meet the criteria of success and failure of the consumer? (e.g. increase productivity, reduce costs, ...)
• Do they simplify the implementation process? (e.g. reducing costs, investments, risk; improving quality, productivity, design, ...)

Rank each advantage that your products and services create in order of importance to your consumer. Is it significant or minor? Indicate how often each advantage takes place.

Customer competition

Most of the values ​​offered compete with each other for the same consumer segment. I like to think of it as an “open niche” that a company that offers the best fit will fill. This visualization was the idea of ​​Alan Smith, one of my co-founders and developer of the business model generation.



If you outline alternative proposed values, you can easily compare them by working with the same variables (for example, price, productivity, risk, quality of service, etc.) on the so-called strategic outline .

Canvas Poster Offered Value

You can use the Canvas of the proposed value in the same way as the Canvas of the business model: print a poster, attach it to the wall and use stickers to describe.

Unlike the Canvas business model, the Canvas poster and methodology of the proposed value are protected by copyright. However, you can freely use it and make money on it as an entrepreneur, consultant or manager, if you are not associated with a software company (in this case, you need to obtain a license from us). When using, please refer to BusinessModelGeneration.com .

The following is a downloadable version of the Canvas Poster of Suggested Value .

Testing and changes

Using Canvas of value as a tool for reflection and design is only the beginning. To get the most out of it, you must also use testing and changes. In my next post I will explain how you can ideally combine the Canvas of the proposed value with the process of consumer development and a lean startup. I will tell you what significant assistance it can provide when you “leave the office and communicate with your customers,” as Steve Blank would call it.

Along with the “proposed value”, there are alternative translations: value proposition, key value, value of the proposal. All of them are translation of English “Value Proposition”. The

translation was made as part of the Tolstoy Summer Camp startup school..